Info Edge shares have always been attractive to investors because they gave them online access to a range of companies. These include recruitment, real estate, education and food supply. However, she was also a victim of Kovid-19 and was blocked accordingly.
Wipro’s comments indicate that the attitude will be softened in the near future. In addition, companies in various sectors have reduced wages, which is a problem for the real estate sector. Naukri.com (employment portal) and 99 Acres (real estate portal) together account for 58% of Info Edge’s ratings.
Whether the 25% correction in the Info Edge stock – from its 52-week peak in February – is seen as a buying opportunity, or whether the 7.6% market rally in the past month has been interpreted as fundamental – these are issues that investors are facing.
However, the analysts are separated. Motilal Oswal Financial Services has maintained its neutral equity rating, mentioning the suspension of income in the near future.
Human resources activity has shown the first signs of a slowdown since January, but the decline did not occur until March. In the first 20 days of March, the decline was 5%. However, as a result of the blockade in the last ten days of March, recruitment activities decreased significantly. This led to an overall decrease in new recruits of 18% compared to the previous year, analysts note.
In contrast, JM Financial recently increased its recommendation for the share before buying it from its owner in the hope that it will weather the crisis better than its competitors. This optimism is based on the company’s track record in crisis management, strong foundations, excellent positioning in all areas of the company and a cash reserve of Rs.1,500 for the December quarter.
A real estate agency remembers the pressure on short-term profits due to the pain in Nauri and on 99 acres.
JM Finance has reduced its estimated revenues for FY20, FY21 and FY22 by 3%, 12% and 14% respectively, assuming that the pressure from Covid-19 will be contained by June 2020.
These figures do not take into account a possible reduction in income from his food supply. Zomato, in which Info Edge has an interest, accounts for 21.2% of its value.
Under these circumstances, although the estimates have increased moderately to 60 times the estimated profit over 21 years (compared to 85 times previously), the prevailing uncertainty does not yet justify the required percentage.